Having a Duplicate PAN Can Attract a ₹10,000 Fine

The government’s PAN 2.0 initiative aims to strengthen taxpayer identification and reduce fraud. The new system enables authorities to detect multiple PANs issued to a single person or incorrect PAN usage. 

Holding more than one PAN or quoting incorrect details can lead to a ₹10,000 penalty. Taxpayers are advised to check and surrender duplicate PANs promptly.

PAN 2.0 and Its Features

PAN 2.0, launched free for all taxpayers, incorporates security measures such as dynamic QR codes to identify duplicate PANs and incorrect information automatically. 

The system integrates multiple government databases, making it easier for authorities to track PAN misuse and potential fraud.

Legal Implications of Holding Multiple PANs

Under Section 272B of the Income Tax Act, 1961, no individual can possess more than one PAN. Failure to comply may result in a fine of ₹10,000. 

Taxpayers found with multiple PANs are required to inform their jurisdictional assessing officer and get the additional PANs deactivated or cancelled.

How to Check for a Duplicate PAN

Taxpayers can verify whether multiple PANs exist in their name through the income tax e-filing portal’s ‘PAN status check’ functionality or by approaching their jurisdictional assessing officer.

Early verification helps prevent misuse in cases of GST or income tax fraud.

Procedure to Surrender Duplicate PAN

To cancel a duplicate PAN, individuals can submit a PAN Change Request form through the Protean portal, mentioning the PAN currently in use and providing copies of the additional PAN(s) to be surrendered. Proper submission ensures compliance with legal requirements.

Other Instances Leading to Penalties

Providing an incorrect PAN or Aadhaar number during mandatory transactions, or failing to quote either, may also attract a ₹10,000 penalty. 

Taxpayers should ensure the accuracy of their documents when filing ITRs or engaging in transactions requiring PAN details.

Read More: PAN Aadhaar Linking Deadline What Happens If You Don’t Link Your PAN By December 31.

Conclusion

The PAN 2.0 system enhances transparency and reduces the scope for fraud. Individuals must check for duplicate PANs, surrender additional cards if necessary, and ensure accurate details in all financial transactions to avoid penalties.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.